810.00/a/34
The Minister in Paraguay ( Mooney ) to the Secretary of State
[Received December 3.]
Sir:
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Referring to the numerous despatches of this Legation on the subject, attention is called to the Paraguayan grant of a port works and reclamation concession to the Construction and Engineering Finance Company, a subsidiary of MacArthur Bros., of New York, for an improvement in the city of Asuncion, and the final forfeiture of said concession for the non performance of obligations imposed upon the concessionaire thereunder. It is unlikely that this concession will be renewed unless some very attractive consideration moves to [sic] the Paraguayan Government therefor. The grant of a loan would probably be sufficient consideration to influence such a renewal.
The Italo Argentino Company recently made purchase of the property and holdings of the Asuncion Light Tramway and Power Company, an English corporation, and is now operating its business. The purchase[r] is said to be well supplied with funds, and confidential advices from men high in official affairs in Paraguay are to the effect that inquiry has been made as to whether the port works concession would be renewed if purchased by the Italo Argentino Company and an intimation has been conveyed that a reasonable loan would be made to the Paraguayan Government in consideration of the renewal and extension of the concession.
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I have [etc.]